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Following in the steps of Maryland and Nevada, California just adopted a comprehensive drug pricing transparency law that will have a significant impact on the pharmaceutical industry, particularly on drug manufacturers. On October 11, 2017, California governor Jerry Brown signed Senate Bill – 17 into state law. While one of the law’s stated purposes is to “provide notice and disclosure of information relating to the cost and pricing of prescription drugs in order to provide accountability to the state,” it is unclear exactly how and to what extent the state may use the information gained from drug manufacturers to actually effect any pricing controls. Manufacturers and pharmacy benefit managers (PBMs) should take note of the many ways this law will impact their operations.

*This alert was originally posted on Arent Fox's Health Care Counsel blog. To read this alert in its entirety, please click here.

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